Zenith Bank Plc has requested approval from the Nigerian Exchange (NGX) Limited to raise N188.37 billion by selling 5.23 billion shares through a rights issue.
According to a statement signed by Godstime Iwenekhai, head of the issuer regulation department at NGX, the qualification date for the rights issue is July 24.
Zenith Bank, through its stockbroker Stanbic IBTC Stockbrokers Limited, has applied to the NGX to list the rights issue of over 5.23 billion ordinary shares at 50 Kobo each, priced at N36.00 per share, on the basis of one new share for every six existing shares held as of July 24, 2024.
On April 12, Zenith Bank revealed plans to raise an undisclosed amount in both the international and Nigerian capital markets. The funds will be raised through the issuance of ordinary or preference shares, via private placement, rights issue, or both.
The bank also announced that it would propose at its AGM to increase its issued share capital from N15,698,246,893.50 to N31,396,493,787.
Zenith Bank’s move to raise capital follows a directive from the Central Bank of Nigeria (CBN) on March 28, which requires commercial, merchant, and non-interest banks to increase their minimum capital requirements. The new capital base for commercial banks with international licenses is set at N500 billion, while national and regional banks are required to have N200 billion and N50 billion, respectively.
Currently, with a capital base of N270.75 billion, Zenith Bank needs to raise an additional N229.25 billion to meet the new minimum capital requirement of N500 billion.
